Differences Between Contracts Flashcards
What different types of contract are you aware of?
NEC
JCT minor works
JCT D and B
JCT Intermediate
What is the difference between NEC and JCT?
JCT is drafted for use in the UK whereas NEC is designed to be used internationally
NEC is designed to be more collaborative and for where both client and contractor have more resources to be able to manage contracts more collaboratively (e.g. larger contracts).
NEC is designed to promote clarity, flexibility and good management. It requires a more proative and collaborative approach.
JCT allocates risk and assesses compensation without hands-on conflict management. It focuses on liability and risk in the manner of traditional contracts.
NEC is written in plain English and tries to avoid the use of legal terms. JCT is becoming clearer but historically wasn’t as clear.
Under NEC the programme is revised each month and submitted to the PM who then accepts it. Under JCT the programme stays the same from inception.
Under JCT part completion of work is valued but under NEC work is only completed when it is finished.
What is the difference between Jct and NEC?
Approach:The intention behind the NEC suite of contracts is to require a more collaborative approach between contractor and employer in resolving any cost, quality or time issues. Use of the NEC contract is more prominent in international projects and complex engineering contracts where each party has the resources to be proactive in the contract’s management throughout the project’s life but the domestic UK popularity of NEC is increasing.
Approach:The main feature of the JCT contract is the way their suites focus on allocating risk and assessing compensation without ‘hands-on’ conflict management procedures.
